Alternative
Tax-Advantaged Preferred Securities
Philosophy
- We believe that credit markets in general and hybrid securities markets in particular are highly inefficient.
- When analyzing hybrid and preferred securities, we believe that structural security analysis is every bit as important as issuer credit analysis.
- We believe that investors should be compensated for taking additional credit and interest rate risk.
Portfolio Managers
Investment Approach
- The investment approach for the Tax-Advantaged Preferred and Income strategy is to maximize after-tax yield.
- RCIM seeks to identify securities it believes are undervalued considering credit quality, optionality, security structure, and other investment characteristics.
- The strategy has the flexibility to invest in traditional preferred securities and hybrid preferred securities that take advantage of the qualified dividend income (QDI) and dividends received deduction (DRD) tax benefits.